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Meesho completes reverse flip, merges US entity with Indian

EntrackrEntrackr · 1m ago
Meesho completes reverse flip, merges US entity with Indian
Medial

Homegrown e-commerce platform Meesho concludes its reverse flip to India after receiving final National Company Law Tribunal (NCLT) approval last week. As per its recent filing with the Registrar of Companies, Meesho’s board has approved the merger of its US-based entity, Meesho Inc., with its Indian arm. As part of the process, shares of the Indian entity have been allotted to the US investors, making Meesho a fully Indian entity. As per media reports, the company is expected to pay $280-$300 million tax in the US to relocate its domicile. The Softbank-backed company is likely to file its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for a $1 billion initial public offer (IPO). The e-commerce giant has shortlisted Morgan Stanley, Kotak Mahindra Capital, JP Morgan and Citi Bank as its bankers. According to startup data intelligence platform TheKredible, Meesho has raised over $1 billion in funding to date from investors including Softbank, Prosus, Fidelity Investments, Peak XV and others. The company sustained its growth momentum, posting a 33% year-on-year increase in revenue to Rs 7,615 crore for the fiscal year ending March 2024. It also narrowed its adjusted losses by 97% to Rs 53 crore in FY24. With this reverse flip, the company joins the ranks of Razorpay, Groww, Zepto, Dream11, and PhonePe, all of which have shifted their domiciles back to India. Razorpay paid $150 million while PhonePe and Groww paid Rs 8,000 crore ($1 billion then) and Rs 1,340 crore ($157 million) in taxes, respectively, to complete the process. Meesho’s rival Flipkart, with an estimated valuation of $36 billion, is also working on relocating its domicile from Singapore to India.

Meesho gets NCLT nod to relocate base to India

EntrackrEntrackr · 1m ago
Meesho gets NCLT nod to relocate base to India
Medial

Meesho gets NCLT nod to relocate base to India The National Company Law Tribunal (NCLT) has approved Meesho’s move to shift its headquarters back to India from Delaware in the US, taking it a step closer to its initial public offering (IPO). This allows Meesho to separate from its US entity and merge back with its Indian company, completing its move back to India. A Moneycontrol report also added that Meesho is likely to pay $288 million in taxes for the reverse flip. Confirming the development to Entrackr, a Meesho spokesperson said, “This filing is part of our ongoing transition to re-domicile in India. With the majority of our operations, including customers, sellers, creators and Valmo partners already based here, this step aligns our corporate structure with our day-to-day business footprint.” However, the spokesperson did not comment on the tax amount paid by the company. Media reports suggest that Meesho has also shortlisted Morgan Stanley, Kotak Mahindra Capital, JP Morgan, and Citi as its bankers and is likely to launch its IPO by the end of this year. Last week, the homegrown e-commerce platform also transitioned into a public entity from a private one ahead of its $1 billion IPO. Meesho adds to the growing number of Indian startups such as Razorpay, PhonePe, Groww, Pine Labs, and Zepto that have paid hefty taxes to relocate their base back home after originally being incorporated overseas. While Zepto and Dream11 did not disclose the amount of tax paid for the reverse flip, Razorpay paid $150 million, PhonePe and Groww paid Rs 8,000 crore ($1 billion then) and Rs 1,340 crore ($157 million) in taxes, respectively, to complete the process. Meesho’s rival Flipkart, with an estimated valuation of $36 billion, is also working on relocating its domicile from Singapore to India.

Zepto completes reverse flip from Singapore to India

EntrackrEntrackr · 5m ago
Zepto completes reverse flip from Singapore to India
Medial

Zepto completes reverse flip from Singapore to India Quick commerce platform Zepto has completed its transition from being domiciled in Singapore to India, according to the company’s Chief Financial Officer (CFO), Ramesh Bafna. This shift, commonly referred to as a reverse flip, will enable the Mumbai-based company to relocate its headquarters to India and initiate the process for an initial public offering (IPO), which has been in the works for several months. The development comes weeks after Zepto secured approval from the National Company Law Tribunal (NCLT) for its reverse merger. According to media reports, Zepto aims to raise approximately $400-500 million through its IPO and has selected Goldman Sachs, Morgan Stanley, and Axis Capital as its bankers. “Historic scenes on completion of #IndiaFirst reverse merger from Singapore to India in the #FastestEver timeline. This is a display of understanding of technicals, working with right partners, getting into nuts and bolts on execution, unblocking natural causes of delay and tactical calls real time by an empowered team,” said Bafna in a Linkedin post. With this, Zepto has joined the likes of Groww and PhonePe which relocated their domicile to India from US and Singapore respectively. A bunch of fintech companies such as Flipkart, KreditBee, Pine Labs, Razorpay, Meesho have been working on reverse flips. Pine Labs already received a final nod from Singapore court to shift its base to India. However, Zepto did not disclose the amount of tax it paid for the reverse flip. For instance, PhonePe paid Rs 8,000 crore, while Groww paid Rs 1,340 crore in taxes to complete the process. The quantum of the tax depends on the company’s valuation and third-party audits. Zepto recently raised $350 million in a funding round led by Motilal Oswal Private Wealth at a valuation to $5 billion. In 2024, the company secured an additional $1.35 billion, bringing its total funding to $1.85 billion since its inception. For the fiscal year ending in March 2024, Zepto’s revenue from operations surged 2.2X to Rs 4,454 crore from Rs 2,026 crore in FY23. During the period, its losses decreased slightly by 2% to Rs 1,248.6 crore.

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